Kenya Eurobond Pricing ‘Favorable’ Despite Lack of IMF Deal
- Seven-year Eurobonds priced at 7%, 12-year paper at 8%
- Dual tranche raised $2.1 billion for East African nation
The Kenyan central bank sits in central Nairobi.
Photographer: Trevor Snapp/Bloomberg
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Investors didn’t punish Kenya in its latest Eurobond placement and demanded relatively low premiums despite the East African nation’s lack of precautionary measures to guard against exogenous shocks to its balance of payments.
Kenya’s $900 million seven-year bonds were priced at 7% and its 12-year paper for $1.2 billion received 8%. Following in Ghana’s footsteps, the East African nation went to the market without a standby facility from the International Monetary Fund.